The global stainless steel market is projected to reach US$133.84 billion by 2025, up from US$93.69 billion in 2018, according to a new report by Grand View Research Inc. It is projected to expand at a compound annual growth rate (CAGR) of 5.2 percent from 2019 to 2025. Rising demand from end-use industries such as automotive, oil and gas, and the construction sector is anticipated to propel growth. Moreover, increasing investments in R&D for steel manufacturing is also projected to contribute to the growth of the industry.
According to the report, the 300 series grade steel is anticipated to reach US$71.9 billion by 2025 at an estimated CAGR of 5.1 percent during the forecast period. In terms of revenue, the long products segment is projected to expand at a CAGR of 4.7 percent over the forecast period.
From a regional market perspective, Asia Pacific is projected to witness a significant CAGR of 4.7 percent over the forecast period, owing to rise in infrastructure investments and demand vehicles in the region. For instance, as per the 13th five-year plan of the Civil Aviation Administration of China (CAAC), China is aiming to build around 74 more airports by 2020. It is also planning to construct 30,000km of highways and one million kilometres of rural roads. Further, this plan is also created to achieve cumulative sales and production of five million electric vehicles by 2020.
Europe accounted for 17.6 percent of the global market share in terms of revenue in 2018. Growing automotive sector in countries such as Germany and France is projected to assist the regional demand. Rise in demand for consumer goods supported by manufacturing of electromechanical components is expected to buoy the regional market over the next seven years.
Growing Automotive Sector
The automotive sector is expanding at a greater pace owing to easy access to credit facility and increasing necessity amongst people to own a vehicle. Stainless steel’s ability to absorb the energy during collision makes it a key material in automotive components. The demand for products such as frame, exhaust system, wheel rim, engine cradles, floor panels, gaskets, and suspension systems is also expected to rise.
However, the increasing use of aluminium and carbon fibres in automotive components is projected to restraint the market growth for stainless steel. The advantages of aluminium such as fuel efficiency, recyclability, durability, performance, and environmental safety make it suitable in vehicles. In addition, the increasing government pressure on manufacturers to reduce emissions of harmful chemicals is projected to boost the demand for automotive aluminium in the coming years. In particular, around 90 percent of aluminium can be recovered from the products and again recycled for further processing. It is believed that 1kg of aluminium can replace around 2kg of cast iron or steel in the manufacturing process.
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